From Passwords to Crypto: Managing Digital Assets in Your Estate Plan
Plan for your digital assets—from login info to cryptocurrency—with DK Law Group.
In today’s world, we live much of our lives online. From social media accounts to email, banking apps, and even cryptocurrency wallets, our digital assets are a big part of who we are. But what happens to these online accounts and virtual belongings when we pass away? If they’re left out of your estate plan, your family might not even know these assets exist or how to access them. That’s why it’s important to include digital assets in your estate plan so your loved ones know what to do. In this guide, we’ll explore what digital assets are and how to manage them as part of your estate plan.
Illustration: A multitude of online account icons (social media, email, etc.) on smartphone screens, representing various digital assets.
What Are Digital Assets?
“Digital assets” include anything you own or manage in electronic form. This can range from personal accounts to files of sentimental value. Common digital assets include:
Social media accounts: Facebook, Instagram, Twitter, LinkedIn, etc.
Email accounts: Gmail, Outlook, and other email services.
Online banking & investment accounts: Bank account logins, PayPal, stock portfolios, retirement accounts.
Cryptocurrency and NFTs: Bitcoin, Ethereum, and other crypto assets or digital collectibles secured by private keys.
Cloud storage and digital media: Files stored on Google Drive or Dropbox, personal photos, videos, music libraries, and even loyalty program points.
All of these assets exist online and often require passwords or two-factor authentication to access. They may also have real financial value or sentimental worth. Just like physical belongings, digital assets need attention in your estate plan.
Why Include Digital Assets in Your Estate Plan?
If digital assets are not included in your estate plan, your loved ones may never know they exist or be unable to retrieve them due to privacy locks. Many online platforms have strict terms of service and privacy laws that prevent unauthorized access. Without proper planning, even your next of kin could be locked out of important accounts. For example, a social media company might not allow anyone to log into a deceased person’s account unless explicit permission was given. In some cases, families have faced legal battles to access a loved one’s emails or photos.
Including digital assets in your estate plan ensures they are handled according to your wishes. This might mean passing along something of monetary value (like cryptocurrency) or simply preserving cherished photos. It also spares your family from stressful uncertainty. In fact, a 2024 survey found that Americans value their personal digital assets at over $190,000 on average, yet 76% admitted they have little or no knowledge of digital estate planning. That gap can leave families struggling if online accounts are forgotten or inaccessible. By listing and planning for your digital assets, you provide a roadmap for your heirs instead of a scavenger hunt.
Just as you take steps to protect your other assets – for example, shielding your bank account from garnishment or carrying insurance on your property – you should also safeguard your online accounts. Proper planning will help your family avoid legal nightmares or financial losses that could arise from overlooked digital property.
How to Manage Digital Assets in Your Estate Plan
Managing your digital assets in an estate plan comes down to organization and clear instructions. Here are some steps to get started:
Inventory Your Digital Accounts: Make a list of all your digital accounts (email, social media, banking, investments, cryptocurrency exchanges, etc.), along with associated usernames. Store your passwords securely using a password manager or by writing them down and keeping them in a safe place (like a locked safe or safe deposit box). This inventory is the foundation of your digital estate plan.
Decide What Should Happen to Each Asset: For each account or digital asset, decide on its fate. Do you want social media profiles to be memorialized or deleted? Should certain files be shared with family or destroyed? If you own cryptocurrency, determine who should inherit it or if it should be converted to cash for your estate. Outline these wishes clearly. Each asset can have a plan – for example, “Close my Facebook after memorialization,” or “Transfer my Bitcoin wallet to my spouse.”
Appoint a “Digital Executor” or Manager: Choose a trusted person to manage your digital assets after you’re gone. This could be the same executor as for your will, or another tech-savvy friend/relative specifically tasked with digital matters. Make sure this person knows about your digital inventory and where to find the access information (but do not put actual passwords in your will, as that document becomes public record). Instead, you might state in your will that your named digital executor has permission to access your accounts. Many U.S. states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which basically allows an appointed person to legally access your online accounts — but only if you explicitly grant that permission in your estate plan. So, include clear authorization in your will or trust for your digital executor to handle your online accounts.
Provide Instructions and Backup Access: Along with listing accounts, leave instructions for anything complex. For example, if you have cryptocurrency, explain how to find your crypto wallet or private keys (never list the private keys themselves in plain text, but you might describe where they are stored). If you use two-factor authentication or encryption, note those details. You might use a password manager’s emergency access feature, which can grant your designated person access to your password vault if something happens to you. The goal is to make it as straightforward as possible for your executor to carry out your wishes without guesswork.
Keep Your Digital Plan Updated: Treat your digital asset list like a living document. Review and update it regularly, perhaps once a year or whenever you open new accounts or change important passwords. Our digital lives evolve quickly – you might join new social networks, acquire new cryptocurrency, or stop using old services. Regular updates prevent the plan from becoming outdated. Also, ensure that your executor or a family member knows where to find this information when needed. A plan no one can find won’t be helpful.
By following these steps, you create a clear path for your heirs to manage or inherit your online life. You’ll save them the frustration of searching for passwords or dealing with customer support to prove authority. It’s a gift of peace of mind alongside your physical estate plan.
Image: A person using a tablet and laptop to organize digital accounts, illustrating the process of managing digital assets in an estate plan (securely documenting accounts and passwords).
Stay on Top of Changing Rules
Digital platforms and laws are constantly changing. What might be accessible today could be locked down by new privacy features tomorrow. For example, some email providers or social networks may update their terms of service regarding inactive or deceased users. It’s important to review your plan periodically to ensure it still aligns with current policies. A well-managed digital estate plan will make sure your assets are protected and your family can follow your wishes without confusion.
Laws also continue to evolve to address digital assets. We mentioned RUFADAA above – this law (or similar ones) now exists in many states to help executors handle digital accounts. There are also federal laws like the Stored Communications Act that restrict companies from divulging someone’s data without proper consent. Because of this, having your wishes in writing is critical. Providing legal consent in your estate documents can mean the difference between your family accessing your treasured photos and emails or losing them forever due to privacy rules.
Since these rules can be complex, consider consulting an estate planning attorney (like us) who stays up-to-date on digital asset laws. Regularly updating your estate plan to comply with new laws or platform features will ensure a smooth process for your heirs. If you’re not sure about the latest policies on, say, your Apple or Google accounts, don’t hesitate to ask for guidance.
Conclusion
Digital assets are just as important as your physical belongings in today’s connected world. Without a plan, your family might struggle to access or manage your online accounts, leading to lost investments or priceless memories disappearing. By including your digital assets in your estate plan, you take control of your digital legacy and spare your loved ones unnecessary hardship. It’s a relatively simple addition to your planning that can make a huge difference in wrapping up your affairs.
In summary, take inventory of your online life, decide how you want those digital pieces handled, and write those instructions into your estate documents. The peace of mind that comes from knowing your Facebook, email, crypto, and other accounts are in order is well worth the effort. Your heirs will be grateful that you thought ahead.
If you found this guide helpful, feel free to share it with friends or family who might also benefit from planning their digital legacy. By spreading the word about digital estate planning, you can help others protect their online lives too. 📲💻
How DK Law Group Can Help – Contact Us Today
At DK Law Group, we specialize in estate planning for the modern age, including managing digital assets. We understand that today’s “estate” isn’t just your house and bank account – it’s also your Instagram, your cryptocurrency, your online business accounts, and more. Our team has experience protecting all types of assets. From helping you protect your personal bank account from creditors and garnishment to shielding your investment portfolio from tenant lawsuits, and advising on essential insurance policies for maximum property protection, we have you covered. We apply that same diligence to safeguarding your digital wealth in your estate plan, ensuring nothing falls through the cracks.
Here’s how we can help you secure your digital legacy:
Comprehensive Digital Asset Audit: We’ll work with you to create a secure, encrypted list of your online accounts, passwords, and instructions. This way, your executor will have clear guidance. (We can also advise on the best password managers or storage solutions for this sensitive information.)
Customized Estate Plan Language: Our attorneys will include specific language in your will or trust to grant your chosen representative lawful access to your digital assets. This includes powers of attorney and appropriate provisions under laws like RUFADAA, so companies know your executor has permission to act on your behalf.
Up-to-Date Planning: Technology changes fast. We offer periodic reviews to update your estate plan for any new digital accounts you’ve added or any changes in relevant laws. This proactive approach keeps your plan current and effective when it’s needed.
Guidance on Platform Policies: Different websites have different rules (Facebook, for example, allows you to designate a Legacy Contact to manage your profile). We stay informed of these options and will help you take advantage of tools provided by various platforms to memorialize or transfer accounts according to your wishes.
Planning ahead for digital assets can be complex, but you don’t have to figure it out alone. DK Law Group is here to guide you every step of the way, so that all your assets – from passwords to crypto – are handled exactly as you intend.
Let’s get started on securing your digital legacy. Planning today means peace of mind for tomorrow. Call us at (443) 739-6724 or email diana@dklawmd.com to schedule a consultation. Protect your online world just as effectively as your real-world assets, and ensure your loved ones can easily carry out your wishes. Your future self and your family will thank you!